When oil is close to a near term top and CLR's shares have pulled back from $54 when oil was climbing at the time. Not a bullish trend for me. I said this would hit $45 when it was in the low $50's shares went even lower than that target. I would wait for around $44 or lower to nibble.
Once again inside info rules CLR was very strong on Friday with oil down here's why.... Goldman Sachs raised CLR this morning to buy from neutral and raised their target from $46 to $60 yet their is a headline this morning that Goldman cuts their 5 year average prices on Brent to $58 and WTI $52 but they actually did raise both of those off recent lower predictions. I have seen similar action in a few stocks I follow in the past two weeks. It's nice to be an insider.
I'm not sure yet. Oil has to be getting near a top soon and CLR rallies each day when oil is up then falls apart by the close whether oil ends up or not for the day. I truly believe Einhorn has wrecked CLR in the near-term. Low $46 has been holding but since it closed $46.73 I bet we see a $45 on it tomorrow unless oil rallies off the inventory number tomorrow but like I said CLR breaks down into each close lately.
Einhorn has wrecked this stock at least for now. Every rally has been sold big time whether oil is up or not. Meanwhile others even the riskier stocks in the sector have rallied.
i think shale oil/gas companies are a very good comparison to the dotcom bubble, some will survive the majority will not. the ones over leveraged will bit the dust first.
i get a kick out of people saying their technology will make them profitable at $50/brl . their technology is for fooling investors and banks into thinking their gonna be getting better production. sorry to say that they're not creating oil they're merely finding it and the sweet spots get tapped first. thats why they're using more expensive wells, deeper , longer, more chemicals, sand etc. to make up for the fall off in production thats naturally happening.
they'll hope they get bought out for their proved reserves so an oil major and can add them to theirs.
with oil at $110, they were still free cash flow negative. can any of these companies ever afford to pay dividends or will it be like the dotcom plays where the shareholders hope they are bought out or else the company goes bankrupt once they can no longer roll their debt?